• Explaining rate policy is Fed’s next crucial step
  • Expects inflation to speed up towards fed’s 2% target
  • Predicts annual inflation at 2% in 2nd half of 2013
  • Says FOMC may want to say Fed funds increases to be gradual
  • Says delay to tapering may threaten FOMC credibility
  • Fed should alter policy to more normal conditions
  • Clear job gains warrant tapering bond buying

As I said in the preview, George is a ‘hawk’, her comments are not surprising. Certainly not surprising the markets, pretty much unchanged.

Link to full text of her speech: U.S. Monetary Policy: Risks of Delayed Action (PDF)